please ASAP, direct thumps up :) SDACO needs a machine for steel operations. It has two options: The firm can by the machine with a single cash payment now of the amount $40,000. Another alterative isto pay $6,000 down payment and five equal annual payments. The salvage value at end of year 5 is negligible. If the company's MARR is 8% . What is the value of theannual payments so that the two options are indifferent?9158.29132.68515.510018.3

Option 1 - Buy machine with single cash payment of $40,000 Option 2 - Pay Down payment of $6000 and…

SDACO needs a machine for steel operations. It has two options: The firm can by the machine with a single cash payment now of the amount $40,000. Another alterative to pay $6,000 down payment and five equal annual payments. The salvage value at end of year 5 is negligible. If the company's MARR is 8% . What is the value of the annual payments so that the two options are indifferent? 9158.2 9132.6 8515.5 10018.3

SDACO needs a machine for steel operations. It has two options: The firm can by the machine with a single cash payment now of the amount $40,000. Another alterative to pay $6,000 down payment and five equal annual payments. The salvage value at end of year 5 is negligible. If the company's MARR is 8% . What is the value of the annual payments so that the two options are indifferent? 9158.2 9132.6 8515.5 10018.3

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 2P

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please ASAP, direct thumps up :)

SDACO needs a machine for steel operations. It has two options: The firm can by the machine with a single cash payment now of the amount $40,000. Another alterative is
to pay $6,000 down payment and five equal annual payments. The salvage value at end of year 5 is negligible. If the company's MARR is 8% . What is the value of the
annual payments so that the two options are indifferent?
9158.2
9132.6
8515.5
10018.3

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